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Lending firms using the Account Aggregator (AA) framework facilitated loans worth Rs 42,300 crores from September 2021 to March 2024, noted a report released by Sahamati on Monday. Sahamati is a market-led industry alliance for the AA ecosystem. The report on ‘Lending facilitated by Account Aggregators’ is the first of a series.
It is aimed at tracking the level of adoption and usage of the AA framework. In the current report, it is noted that lending firms have used AA framework to facilitate loans worth Rs 42,300 crores from September 2021 to March 2024, with a cumulative average loan ticket size of Rs 1,00,237 for the same period. The growth in facilitating loans is indicated by total loans disbursed which is Rs 21.
2 lakhs with Rs 22,100 crores in disbursements facilitated by AAs in second half of FY24. "Average loan ticket size in this period stood at Rs 1,04,245 and is expected to reduce as we expect more cash-flow based lending to MSMEs and unsecured loans to new to credit customers," Sahamati said, in a statement. The numbers represent the data submitted by the nine top-performing Financial Information Users (FIUs), accounting for about 60% of consents fulfilled for the second-half of FY24.
"The numbers, if extrapolated for the ecosystem, are much higher," Sahamati said. Artificial Intelligence(AI) Java Programming with ChatGPT: Learn using Generative AI By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Artificial Intelligence(AI) Basics of Generative AI : Unveiling Tomorrow's Innovations By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Artificial Intelligence(AI) Generative AI for Dynamic Java Web Applications with ChatGPT By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Artificial Intelligence(AI) Mastering C++ Fundamentals with Generative AI: A Hands-On By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Artificial Intelligence(AI) Master in Python Language Quickly Using the ChatGPT Open AI By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Office Productivity Zero to Hero in Microsoft Excel: Complete Excel guide 2024 By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Astrology Vastu Shastra Course By - Sachenkumar Rai, Vastu Shashtri View Program Data Science SQL for Data Science along with Data Analytics and Data Visualization By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Web Development A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024 By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Office Productivity Mastering Microsoft Office: Word, Excel, PowerPoint, and 365 By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Marketing Digital marketing - Wordpress Website Development By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert View Program Web Development Mastering Full Stack Development: From Frontend to Backend Excellence By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Finance Financial Literacy - TDS, Budget, Income Tax Act, GST, Indirect tax By - CA Rahul Gupta, CA with 10+ years of domain experience, trainer View Program Leadership Business Storytelling Masterclass By - Ameen Haque, Founder of Storywallahs View Program Future of Marketing & Branding Masterclass By - Dr.
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Gupta, Professor: Department of Finance and Business Economics, University of Delhi View Program Marketing Performance Marketing for eCommerce Brands By - Zafer Mukeri, Founder- Inara Marketers View Program As of August, there were 163 Financial Information Providers (FIPs) on the AA system, which includes banks, insurance firms, mutual funds, depositories, pension funds and tax/GST. "Individuals can now access or share machine readable, tamper-proof data from these sources, through their AA apps or web pages for self use or for FIUs. The explicit, informed consent-based system, in turn, gives them control over their own data," Sahamati said.
Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories "Lending firms are using AA at multiple points of a customer’s loan journey such as onboarding of customers, underwriting and efficient monitoring of customer accounts. The reliability, convenience, and security of data sharing through AA platforms brings down the transaction costs for the lenders by nearly 20-25%," it claimed. "More importantly, real-time data access reduces the cases of fraud to nil, making the entire system more efficient.
For customers, along with the convenience, modular, purpose-based data sharing through AA significantly reduces the risk of misuse of data," it said. "As reported by one of the lending firms, access to online data enabled them to lend 30% more for priority sector lending for loans processed through AA," Sahamati said. BG Mahesh, chief executive, Sahamati, said, “We have seen a steady 15% monthly growth on the number of cumulative consent requests being fulfilled on the AA framework.
Each consent request represents the fact that more and more individuals are now in control of their data and are using it for accessing financial services .” “Lending firms have been the first few players who have adopted the AA framework for their ongoing business. The authenticity of data on AA framework, along with the ease of use, results in higher operational efficiencies and a high reduction in fraud cases through tampered documentations.
We are glad to see a steady increase in the usage of AA for making financial services more accessible to the masses,” he added. Sahamati is working on defining fair use templates that set limits on data usage and is also developing the technology infrastructure to detect and enforce adherence to these templates programmatically, it said..
